Datadog Inc (Pre-Reincorporation)

datadoghq.com

What Do They Do?

Sells cloud software for monitoring applications and infrastructure, managing logs, and securing cloud environments to organizations across industries.

How Do They Make Money?

Customers buy subscriptions to Datadog’s cloud platform. Annual or multi-year subscriptions are generally billed in advance; monthly plans and usage beyond a commitment are billed monthly after use.

FY2025 revenue

Who Are Their Customers?

Organizations of all sizes and across industries buy the platform; they can install it themselves and expand their usage on a self-service basis.

Do Revenues Turn Into Profits?

Yes. It kept 3 cents of every revenue dollar as net income in FY2025 and turned 29 cents into free cash flow.

Operating income, FY2025

−1% of revenue

▼ Now a loss vs FY2024 ($54.3M, 2%)

Net income, FY2025

3% of revenue

▼ −41% vs FY2024 ($183.7M, 7%)

Free cash flow, FY2025

29% of revenue

▲ +20% vs FY2024 ($835.9M, 31%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +36%; vs $826.8M in Q2 FY2025
Net income: ▲ +1583%; vs $2.6M in Q2 FY2025

Aug 6, 2026 Acquired Adaptive ML and issued financial guidance The release gave revenue outlooks for the third quarter and full year.

Growing. Revenue grew 3.3x in 4 years, from $1B in FY2021 to $3.4B in FY2025, about 35% a year.

Broader product areas The older report describes observability, cloud security and developer-focused products; the latest report also includes software delivery, service management and product analytics.

Who Do They Compete With?

Competes with IBM, Microsoft, SolarWinds, Cisco Systems, New Relic, Dynatrace Software, Elastic, and Amazon Web Services

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